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Europe’s Growth Challenge, co-authored by Anders Aslund and Simeon Djankov, Executive Director of FMG, is one of the five finalists for the 14th annual Hayek Book Prize. Manhattan Institute's Hayek Prize honours the book that best reflects Friedrich Hayek’s vision of economic and individual liberty.

"In Europe, you have 28 different banking systems, which were created nationally under different mandates," said Tom Kirchmaier, deputy director of corporate governance at the London School of Economics.

With around £6bn, or 25 per cent, of UK asset management revenues that come from EU-related business set to be directly affected by Brexit, firms should look to open offices across Europe, Simeon Djankov, executive director of the financial markets group at LSE, says.

The City of London after Brexit is the focus of a new FMG discussion paper by Simeon Djankov. In March 2017 the UK government will apply for Article 50 of the Lisbon Treaty to end its membership in the European Union. This unprecedented step follows the 2016 referendum on the country’s exit from the European Union, the results of which surprised many economists.

LSE's partnership with Swiss Re continued on February 24th as the FMG hosted a second roundtable event to investigate the stability of financial markets, the health of private capital markets and more specifically the environment in which long-term investors operate. Read more.

In a new paper in the FMG Discussion Paper series, Martin Oehmke (LSE) and Adam Zawadowski (Central European University) provide evidence that CDS markets emerge as alternative trading venues that serve a standardization and liquidity role.

The Financial Markets Group and the Finance Theory Group (FTG) will hold a joint conference covering theoretical work on “The effects of financial frictions in firms, capital markets, and the real economy.” The conference will take place at the London School of Economics from June 19th - 21st, 2017.

A new paper by Ian Martin (LSE) and Christian Wagner (Copenhagen Business School) presents a formula that expresses the expected return on a stock in terms of the risk-neutral variance of the market and the stock’s excess risk-neutral variance relative to the average stock.

LSE has announced a formal partnership with Swiss Re, one of the world's largest reinsurers, to support an 18-month research programme on monetary policy and long tem investment. The project got underway with an event entitled 'The Big Ease'.

The Financial Markets Group frequently appears in the press, and our staff and associates are often asked to comment on the latest financial news stories. Here you will find a selection of news articles relating to the FMG.

How to Fix Wall Street’s Flawed System of CompensationNew York Times, July 2016Report on a recent speech by Professor Charles Goodhart, who argues that transformation of the old partnership culture into a bonus culture where bankers, traders and executives have minimal accountability, has resulted in a marked increase in the frequency and intensity of financial crises.

Breaking the 'curse of the benchmarksIrish Times, April 2016Institutional investors’ obsession with short-term performance means money managers are engaging in activity that is “not merely superfluous but wealth-destroying”, causing bubbles, crashes and financial market dysfunction.

Do Benchmarks Distort the Markets? & The Curse of the Benchmarks, Part IIMorningstar, March 2016Dimitri Vayanos and Paul Woolley have taken the common idea that benchmarks hamper fund managers one very large step further. In Curse of the Benchmarks, they argue that using market-capitalization-weighted benchmarks damages more than just fund managers. The practice, they claim, hurts the financial markets themselves.